30-03-2012, 07:35 AM
12.5% of credit card holders still miss one or more payments? Isn't the interest rate of 24% per annum stifling enough? How can people want to pay that kind of interest when dividend yields are just 4-5% and savings accounts are paying a mere 01-0.8%? 
The Straits Times
Mar 30, 2012
Slower growth in new credit card accounts
0.26% increase seen last year but existing card holders spending more
By Lennard Ong
THE growth in new credit card accounts slowed last year, but existing consumers have been spending more.
Last year, 606,844 existing and first-time credit card holders obtained one or more new credit cards, up from 605,248 in 2010, according to the Credit Bureau of Singapore yesterday.
This is a 0.26 per cent increase, but a sharp slowdown from the 7.32 per cent increase in 2010.
The fall stemmed from a 0.41 per cent drop in the number of existing credit card holders who obtained new credit cards.
Existing credit card holders make up 82 per cent of the card holders who obtained new cards.
The number of first-time credit card holders expanded 10.05 per cent to 108,977 last year, the highest increase in three years.
Young consumers dominated the market of first-time card holders.
Those between 21 and 29 made up 41.42 per cent of the market, with consumers aged from 30 to 34 comprising 20.64 per cent.
But while card holders seemed less willing to take on new cards, they splurged with their plastic, with the average monthly balance per consumer rising 4.45 per cent last year to $4,807.
Consumers between 45 and 49 topped the spending chart with an average monthly balance of $5,871, while those between 21 and 29 spent the least, at $2,837.
Despite the increase in spending, payments are improving.
Consumers who missed one or more payments on their credit card accounts made up 12.55 per cent of card holders, down from 12.93 per cent of card holders in 2010 and 13.89 per cent of card holders in 2009.
The total number of people with credit cards rose 6 per cent to 1.29 million last year.
The Credit Bureau's executive director, Mr William Lim, said: 'As with all developed markets, the credit card market in Singapore is relatively mature in terms of usage and penetration.
'However, new entrants such as the young, affluent and foreigner segments are helping to create growth, in addition to increasing spending.
'The increased spending in 2011 reflects improved consumer confidence owing to better job creation and probably the popularity of online shopping portals.'
DBS Bank's senior vice-president Ooi Huey Tyng added: 'The increase in the number of new entrants for credit cards can be attributed to many factors, such as growing familiarity with card usage for store and online purchases, as well as increasing acceptance among merchants, including cash-and-carry businesses.
'We have also observed rising demand for a single card that is able to meet the evolving lifestyle needs of today's consumers.'
lenong@sph.com.sg
The Straits Times
Mar 30, 2012
Slower growth in new credit card accounts
0.26% increase seen last year but existing card holders spending more
By Lennard Ong
THE growth in new credit card accounts slowed last year, but existing consumers have been spending more.
Last year, 606,844 existing and first-time credit card holders obtained one or more new credit cards, up from 605,248 in 2010, according to the Credit Bureau of Singapore yesterday.
This is a 0.26 per cent increase, but a sharp slowdown from the 7.32 per cent increase in 2010.
The fall stemmed from a 0.41 per cent drop in the number of existing credit card holders who obtained new credit cards.
Existing credit card holders make up 82 per cent of the card holders who obtained new cards.
The number of first-time credit card holders expanded 10.05 per cent to 108,977 last year, the highest increase in three years.
Young consumers dominated the market of first-time card holders.
Those between 21 and 29 made up 41.42 per cent of the market, with consumers aged from 30 to 34 comprising 20.64 per cent.
But while card holders seemed less willing to take on new cards, they splurged with their plastic, with the average monthly balance per consumer rising 4.45 per cent last year to $4,807.
Consumers between 45 and 49 topped the spending chart with an average monthly balance of $5,871, while those between 21 and 29 spent the least, at $2,837.
Despite the increase in spending, payments are improving.
Consumers who missed one or more payments on their credit card accounts made up 12.55 per cent of card holders, down from 12.93 per cent of card holders in 2010 and 13.89 per cent of card holders in 2009.
The total number of people with credit cards rose 6 per cent to 1.29 million last year.
The Credit Bureau's executive director, Mr William Lim, said: 'As with all developed markets, the credit card market in Singapore is relatively mature in terms of usage and penetration.
'However, new entrants such as the young, affluent and foreigner segments are helping to create growth, in addition to increasing spending.
'The increased spending in 2011 reflects improved consumer confidence owing to better job creation and probably the popularity of online shopping portals.'
DBS Bank's senior vice-president Ooi Huey Tyng added: 'The increase in the number of new entrants for credit cards can be attributed to many factors, such as growing familiarity with card usage for store and online purchases, as well as increasing acceptance among merchants, including cash-and-carry businesses.
'We have also observed rising demand for a single card that is able to meet the evolving lifestyle needs of today's consumers.'
lenong@sph.com.sg